| Link(s): | CP24/11: Quarterly Consultation Paper No. 44 | FCA CP24/11: Quarterly Consultation Paper No. 44 (fca.org.uk) |
Context
Once a quarter, the FCA consults on proposed miscellaneous amendments to its Handbook. These tend to be minor changes, but in the FCA still wants feedback from relevant parties, firms and stakeholders on its proposals.
Key points to note and next actions
This quarter, in addition to less relevant items, there is a proposal to introduce criminal background checks on owners and controllers at the Authorisations gateway.
- The Financial Action Task Force (FATF) recommended that the FCA consider the wider use of criminal background checks on owners and controllers of financial institutions. This recommendation is aimed at ensuring that criminals and their associates are prevented from owning or controlling financial institutions.
- In line with the FATF recommendation, the FCA is now proposing to require controllers and beneficial owners to obtain criminal background checks from the Disclosure and Barring Service (DBS) (or equivalent for persons outside of England and Wales). This requirement will apply to those making an application for authorisation or registration with the FCA and for a notice of an intended acquisition or increase in control (a ‘change in control’ or ‘CIC’).
- The FCA proposals will apply to the following persons:
- potential controllers submitting a CIC notice under Part XII of Financial Services and Markets Act 2000;
- controllers of firms applying to become authorised persons; and
- individuals with a qualifying holding in a payment institution or e-money institution.
Please use the online form or alternatively email: cp24-11@fca.org.uk by 12 August 2024, for the attention of Husna Khatun, Profession, Approach and AI Policy.